If Your Insurance Has Gone Up, It May Be Because Of A Rise In Accident Claim Cases
Monday, July 18th, 2011As the premiums of car insurance continue to soar, more and more drivers are feeling the pinch in their wallets.
Some figures suggest that prices have risen by up to 40% and the average premiums of single car insurance are approaching the £1,000 mark.
Those that are being hit hardest by the massive increases are recently qualified young drivers; with average premiums for this group reaching about £3,500.
In this article, we will examine how a rise in accident claim cases has affected our insurance premiums.
A Litigation Culture
It is fair to say that in the past the UK has not had a particularly strong culture in the United Kingdom.
There was a time when an accident claim would only be sought after in the most severe of cases.
It is perhaps fair to say that those who pursue accident claims in minor cases have been widely chastised.
This, once a widely held view, appear to have changed as the UK’s litigation culture appears to resemble something more like the United States.
Insurers, as a result, have to charge more to cover the cost of paying out for all these accident claim cases.
Exaggerating Claims
Perhaps the main problem is the people out there who are exaggerating their injuries so that they can make an accident claim.
Startlingly, a recent survey suggested 10% of British drivers would be willing to exaggerate their injuries so they could make an accident claim.
If they are successful, then they will receive a large amount which they will be free to spend as they like.
As long as this is accepted within our culture, our car insurance premiums will continue to change.